There are a ton of different property investment strategies out there, but which ones actually work?
Of course, it depends somewhat on the timing of the market (and a little bit of luck) to see the biggest payoff in your investment.
However, luxury homes are a different type of investment than an average property purchase.
You’re not just selling a property, you’re selling a lifestyle.
Let’s break it down.
Luxury Property Investment Strategies vs. Typical Property Investment Strategies
The most expensive home in the U.S. is currently on the market for $250 million dollars.
According to an article by the L.A. Times, this Bel Air mansion boasts 38,000 square feet, 12 bedrooms, 21 bathrooms, and 3 kitchens. It also has an infinity pool equipped with a swim-up bar, a bowling alley, two fully stocked wine cellars, and a 40-seat movie theater.
Lest we forget the massage room and state of the art fitness center. If that weren’t enough, the majority of the house boasts unbeatable views of Los Angeles all the way from downtown to the Pacific ocean. And that’s just the beginning.
The home also comes with a car and motorcycle collection valued at $30 million including a Bugatti and a custom Rolls Royce.
As this property exemplifies, luxury properties are all about the extreme opulence.
The location is of top priority for many buyers, but so are the unique features. Investing in a luxury property requires some serious cash up front, but it can have a massive payoff.
Top 5 Luxury Property Investment Strategies
Don’t worry, you can still invest in luxury homes at a more comfortable asking price than a quarter billion dollars with these property investment strategies.
Capital Growth is King
Of course, you want your investment to pay off. Research the neighborhood thoroughly before you buy to ensure that your property will increase in value and you will gain equity.
Invest in a Vacation Rental Property
A luxury vacation rental property is an excellent investment. You can enjoy it yourself during vacations and rent it out for a rewarding cash flow when you’re not there.
International luxury destinations like Turks and Caicos are a sound investment. The elite will always need a home away from home.
Build “On Spec”
While it’s definitely a little risky, many developers build or flip luxury homes “on spec.” This term means building without a buyer attached, so you’re risking that the buyer won’t have your same style. However, when the stars align and you find the right buyer, the payoff can be huge.
Stay In Touch With the Competition
Many sellers attend the open houses of their competitive real estate properties, and luxury homes are no exception. Luxury homes are sold for their uniqueness, and in order to offer the most brag-worthy amenities, you have to one-up the competition.
Always maintain your property with the idea of selling it for a massive profit one day when the market is right, so you can get an even better property.
If you like this post, leave a comment in the section below.
Also, check out the other great posts the Powerhouse Real Estate blog has to offer, like, “How to Market Million Dollar Homes to Buyers” and “How to Attract More Serious Buyers to Your Los Angeles Home.”